Tether faces 3-year deadline as GENIUS Act becomes U.S. law
2025-07-19 18:08:12
Main Idea
The GENIUS Act, signed into U.S. law, imposes a 3-year deadline for Tether to comply with new stablecoin regulations, prompting its CEO to plan a new U.S.-focused stablecoin while maintaining USDT's focus on emerging markets.
Key Points
1. The GENIUS Act requires stablecoin issuers to hold 100% reserves in cash, cash equivalents, or U.S. short-term treasury bills, with Tether currently 81.5% compliant.
2. Tether has a 3-year window to comply with the GENIUS Act before it becomes unlawful for domestic service providers to use non-compliant stablecoins like USDT in its current form.
3. Tether's CEO announced plans to launch a new stablecoin tailored for the U.S. market, while USDT will continue targeting emerging markets.
4. J.P. Morgan reported Tether's reserves were 84% compliant earlier in the year, but its Q2 2025 reserves report showed 81.49% in cash and T-bills, with the rest in Bitcoin and other assets.
5. The GENIUS Act aims to regulate stablecoin issuers more strictly, ensuring full reserve backing and operational compliance within the specified timeframe.
Description
Tether CEO reportedly plans a new stablecoin for the U.S market, dedicate USDT to emerging markets
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